The former board president of the Lindsay Park Housing Cooperative in Williamsburg was sentenced to a minimum of one to three years in prison last week for her involvement in a corruption scheme.

Cora Dix-Austin, who was first elected to lead the seven-building, Mitchell-Lama affordable housing complex in 2002, was accused of taking bribes from January 2011 to July 2015.

During that four-year span, Austin participated in a kickback scheme involving $500,000 of co-op money meant for services, according to Manhattan District Attorney Cyrus Vance.

In addition to her prison sentence, Austin was also ordered to pay $110,000 in restitution to the 2,702-unit co-op.

Last Wednesday morning in front of Brooklyn Supreme Court, the resident group Shareholders for the Betterment of Lindsay Park rallied in celebration of the outcome. Along with advocates, the shareholders spoke out about the practices Austin engaged in that ultimately hurt the housing co-op for 15 years.

In an interview, Gregory Louis, deputy program director at Brooklyn Legal Services Corporation A and an attorney representing the shareholders, said residents had been complaining about their co-op president to the Department of Housing Preservation and Development (HPD) for a decade-and-a-half, only to be ignored.

“The signs of all these problems were evident, and HPD ignored them,” Louis said. “HPD should feel ashamed.”

The list of grievances from residents run the gamut from lack of repairs to weakening the democracy at the co-op board.

In a January 23rd letter from Nelson Jaime, president of communications with the shareholders group, to Judge Chun, the Lindsay Park resident said maintenance fees have increased 75 percent during Austin’s 15-year reign as president.

According to Louis, in the 37 years prior to Austin’s leadership, the Mitchell-Lama co-op had only increased maintenance fees by $300. For an affordable housing development that Louis called a “bastion of diversity” in the neighborhood housing African-Americans, Latinos, Jewish and Eastern Europeans from nearby neighborhoods, the growing costs were alarming.

In the letter, Jaime also detailed how Austin cut off access to community rooms used by seniors for activities and children for tutoring. He accused Austin of retaliating against shareholders who opposed her by issuing “bogus by-law violations” and even initiating eviction proceedings.

The buildings themselves still face ongoing issues. Jaime said the roofs are in “horrible shape,” and 28 elevators are in such disrepair that residents are constantly trapped in them. The facades of all seven buildings are also in dangerous condition, he said.

The housing co-op now faces a $110 million debt, $70 million of which had been incurred during Austin’s presidency, Jaime wrote. Louis added that Austin applied for a state loan that could have added up to $60 million more to the debt total, but did not get it.

Lindsay Park also dealt with oil spills because the tanks were not maintained, which added remediation and tank replacement costs to the debt.

“I can go on and on about the sad state of affairs, but they all highlight the core reality: while Cora was receiving thousands in a kickback scheme, our cooperative was falling apartment,” Jaime said. “We are literally paying for her crimes through the increased maintenance.”

There have also been long-standing allegations that Austin “bought votes” for the co-op board presidency by giving away apartments to allies, Louis said. Rather than putting her “proxies” on a long waiting list, Austin bypassed the waiting list for the highly coveted affordable housing units, he said.

As a result, Louis said shareholders have run for the co-op board presidency and lost.

“They’ve run against the board knowing they would lose because the fix is in,” he said. “They won the in-person vote but lost to the proxies.”

Though the list of accusations is long, Austin was ultimately brought down for corruption. According to Louis, she made a deal with maintenance workers who usually go into people’s apartments and tell residents they needed to fix two or three things.

Instead, Louis said, the workers would make up to seven repairs to “pad the bill,” and charge the bill to the co-op. The vendor would then give a share to Austin.

According to court documents, Austin was caught when a police investigator used a confidential informant. The informant, the owner of a company that had contracts to provide services for Lindsay Park, gave money to Austin in exchange for an agreement that the company “continued to receive such contracts.”

The shareholders organization has been highlighting the “financial hot mess” and other issues at Lindsay Park for years, Louis said.

They sued the co-op to get records and documents about its management. They hosted town halls to inform residents of their shareholders’ rights. They organized writing campaigns to HPD to bring their issues to the agency’s attention.

Louis said the city agency has been “asleep at the wheel” the entire time. The only reason why Austin was locked up is because prosecutors, starting with former Brooklyn District Attorney Ken Thompson, listened to the shareholders and hosted meetings with them.

“The real core ask for the shareholders is ensure HPD stops being asleep at the wheel, stop being part of the problem and exercise enforcement,” he said. “If all that came of this is Cora Austin was arrested, this would be a waste of time.”

Louis demanded that HPD follow the district attorney’s lead, listen to residents and take their concerns seriously moving forward. Every other person involved in the scheme, including the management company and other vendors who participated, should be brought to justice, he said.

“If you take one elderly African-American woman and throw her in prison and think that’s a solution, it’s not,” he said. “They’re going to put pressure on HPD and the mayor, the city government, to make sure they don’t lose affordable housing because of corruption. If that does not happen, none of this matters.”

In a statement, Councilman Antonio Reynoso said the sentencing of Austin proves that the lack of democracy and transparency at Lindsay Park is a reality.

“Although we applaud the work done by both Thompson and Vance, we must continue fighting for democracy and transparency,” he said, “knowing that Cora’s criminal actions represent only a small link in a long chain of corruption that has occurred at Lindsay Park.”

A HPD spokesperson said the agency takes the oversight of its Mitchell-Lama portfolio seriously, and that it has been cooperating with the district attorney during the investigation.

“HPD is also actively working with the board of directors to secure a much-needed loan to address the physical needs and secure the financial integrity on this coop,” the spokesperson said.

I see HPD doing absolutely NOTHING they have not protected the shareholders. Where are the people that over see HPD why haven’t they said anything because all these people are at fault for letting Cora and the Management office do what ever they wanted. I truly don’t believe anything HPD has to say. I remember how they stood by the crooks to try to get the loan and that outrageous meeting they had no answers for. Shareholders asked questions and they answered nothing if they wanted the board off they would be off. I really don’t think things are going to change because they have too much more to hide. Just one thing to remember HPD as a shareholder I will not tolarate anyone thinking they run my home to many times Cora sent her people to harass tenants who had every right to speak up. She thought she owned building one and made sure she only let the people she wanted into her building. This is such a disgusting behavior and tenants were treated horribly. This is what you want for this board that we don’t trust to continue the old ways, because this board still feels they need to support Cora Austin. Shame on HPD you people need to stop ignoring the shareholders and remove this board. If ni one from HPD continue this behavior theb Mayor needs to remove everyone that is working in the Mitchalama Unit because something doesn’t feel right and many shareholders are tired of the bullshit! We are being forced out of our homes because we sit snack in the middle of BIG MONEY!

Question: Doesn’t HPD approve the appartments that are rented how did these people from management get passed HPD don’t they have the same list? How do people that haven’t been in this country only five years get in before someone thats been waiting ten years? I want to know what’s going to happen with the list Cora and the management was dealing with. This doesn’t look good because we can’t continue with these board members they cant be trusted and if HPD allowed them to stay on we have a big problem in our hands. Not bueno!

Concerned ML Share

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24 Hours Ago

Yes, HPD is supposed to have the same waiting lists as the ML developments. However, it is not unusual for the list to not be called in order and people to get passed over many times. HPD turns a blind eye when things don’t go in order and its brought to their attention.

When elections are rigged and it is brought to HPD’s attention, they don’t do anything about it either. That is how board members stay in place forever and get comfortable and do things they know are wrong. Greed makes them forget about the consequences. Every ten years or so, ML board members, contractors, employees get caught with their hands in the cookie jar. Why do they think that their schemes will go undetected? Why? I don’t get it.

Some board members do not realize that being on the board is serious business and if they just sit at the board room table and nod their heads in agreement with the bs going on around them and be led by the bad actors in power, they will end up in a bad situation. Boards need to be educated, if they remain uneducated we will continue to experience more of the same.

Obviously, the HPD oversight in place is not working.

There needs to be a significant overhaul of HPD and Mitchell Lama oversight.

Boards need to be vetted, HPD used to do this years ago with a form that board members had to fill out. They no longer do it. It may weed out those who have unsavory backgrounds and larceny in their hearts from running for a seat on the board.

Elections must without question be supervised. When the board and their employees run the election process, there is a lot of room for skullduggery. This is how the bad actors stay in power. Absolute power corrupts absolutely.

Affordable housing is at stake here!

BringThe#s

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February 20, 2018

Hi Everyone,

I want to share something I did, years ago. I will do the same again but to various programs I qualify for, this time.

3/2013 (NYCHA closed this List) & 2015 (Still on.)

I submitted an application with New York City Housing Authority “NYCHA”

Reason: 2013-2015 LPHC MI took

nearly 50% of my monthly stipend, before additional fees: appliances & air conditioners. By 2015 I was left with less than $8.00 for Clothes, Misc. Needs & Medical Co-pays.

Advise: I applied for a studio apartment. Which I now think NYCHA might not offer, if I am correct. NYCHA prioritizes - The Homeless, Victims of Domestic Violence (with valid documentation) & If you’re paying more than half of your monthly Income.

There are NYCHA Projects that are not the best environments; namely crimes & lack of upkeep. Research area you’re applying to. This goes for any Housing Program.

Here’s a link to different Housing Programs in NYC.

http://furmancenter.org/institute/directory/all

Check The Zip Code Profile

https://www.moving.com/real-estate/city-profile/

Check The Crime In Área

You can utilize a Real Estate website. Enter a zip code. Then

look at the Neighbor Sub-sections: Click the “Crime” section for data.

1. *Fight for our Homes - In the largest ML Complex in Brooklyn, NY no-one can tell me “There aren’t resourceful Shareholders.” Though I concede. There were not enough Shareholders willing to fight for their Homes. It’s now a different, time. A Shareholder can work behind the scene to improve our Community, if you don’t have time to join a group or serve on the BOD or BOD Committee. Write letters to Elected Officals. Expose to dispose.

2. Reality: If Shareholders are subjected to more severe Maintenance Increases, some of us will have to move; I include myself. A loan from HDC will produce this very thing; some of us will not be able to pay the high Maintenance.

Meds too expensive? If you don’t have Government Medical assistance: MedicAid, Medicare & other government help. Call your Pharmacy ask if your medicines are included in their Pharmacy Savings Card Membership. You pay a yearly Membership Fee & your medicine can be less costly.

3. Buy-outs or Privatization - Being clear to Shareholders wanting LPHC to be Private. More power to you, if you can pay the Market Value for your Home. Let’s say you remain, in order to be bought out for a hefty sum. You will now be in a higher tax bracket & owe extra taxes on whatever profit you gained. The remainder might see you through for several months.

My motto for living is “For every Goliath, there is a David.” If I loose this Home. At least I fought for it - tooth, nail & pen.

Take care, everyone.

*PS: While true: LPHC is a “Not for Profit”. Here’s a nugget for whom-ever is going to be our new Members Of LPHC BOD

You must spend money to generate money.

Broken pool & maybe 1 other pool.

Reconstruct each to be indoor pools. Generate Income, all year not just two months a year.

Our improved in-door pools will help stabilize our need for extra profit, which will be put into our Income to fund: Capital Improvements, meet Local Law Eleven (11) needs, every five years, prevent Shareholders from incurring hefty MI & add to balancing our Communities - Unemployed, Disabled & Retirees.

Oh! No one on the board new this. HPD is not looking very good shareholders are starting to question why this board is still on. NOT GOOD HPD!

anonymous

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February 20, 2018

They have been stealing for years as far back as Ms. Sturdivant-1984. Glad they are finally caught.

LP bkdgs

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February 17, 2018

I wander what the priest at most holy trinity would say. Cora , use to go to Church every Sunday and receive communion and was lying to the church too. She lied to everyone. She really needs to be away more then 1-3 years. The only thing she will be sorry for is getting caught.

“He that is without sin among you, let him first cast a stone at her.”

LP 2

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February 17, 2018

We have a Cora supporter lol!

Eyes Wide Open

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February 17, 2018

This is for anonymous- I’m a shareholder too, don’t try to shut me down by saying “we got this”... I gave my point of view! you all sound so ignorant and only listen to people that say what you want to hear...I’ll be voting for these buildings to go private.

Vote all you want as long as the liars and thieves are gone we are good.

Eyes wide Open

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February 20, 2018

http://www.cu4ml.org/resource_docs/Guide_for_Saving_ML.pdf

Read up on Guide Lines

Naggi

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February 16, 2018

I’m just stating the obvious, these buildings will eventually go private... they don’t have, and have not had control for decades before this scandal and no real oversight... It’s common sense not wishful thinking. Especially with all this exposure and light on Lindsay Park... People that want to stay will have to get a mortgage... the rest will have to pay a higher rent to stay as renters. The inevitable will happen... I’ve seen this very same thing happen to other Mitchell-Lama buildings in Coney Island... it’s just a matter of time.

Please check this website it has a lot of information regarding Privatization and Mitchell-lama. Its only 16 pages and explains the difference. so please check it out.

And how lucky that we live in affordable housing.

http://www.cu4ml.org/resource_docs/Guide_for_Saving_ML.pdf

Take Care.

God Got Us

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February 16, 2018

Naggi I guess you are one of the 1% that can afford your apt if it goes private. You are only thinking of yourself. You must have come from the land of LACK. Lack of Respest, Lack of Compassion for your neighbors. Not everyone can afford their apts if they go private and all the acres/commercial property that Lindsay Park has you and the rest of us will be Priced Out. So treaty think about what you are putting out there. All those who have committed these crimes will face their maker and all the others will to. what’s done in the dark will come to light , it’s just a matter of time, trust they are stewing.

Wow, people are so worked up about all of this... everywhere I turn in my building it’s all I hear people talking about.

We do not own these apartments, we are just shareholders of a corporation... Lmao! People did wrong and they are all going to jail for it. Y’all need to all calm down and look at the real problems going on in this world like the Florida shooting at a high school where people lost their children. I agree with the person below that says these buildings need to go private.

Naggi, I guess you missed the point why shareholders are upset. Lack of fixing our buildings, increasing the maintenance and not seeing where they were spending the money. Always putting LP in debt. Asking for loans every year. Financials don't look right. etc.. A crime is a crime no matter if you are stealing or killing people.

anonymous

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February 17, 2018

What’s your problem about everyone talking, that’s a great thing people are finally tired of the liars and thieves. I say keep talking shareholders we need to mobilize ourselves and get the rest of the good for nothing board members off. Eyes wide open we got this!

Boris Santos

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February 14, 2018

Hey everyone. For those that don't know, I am CM Reynoso's Representative and I am directly responsible for responding to all Lindsay Park Shareholders. At the moment, our office is looking to meet with HPD and the new management (Metro) in order to have them respond to all LP Shareholders and residents. We will be demanding a town hall where no question is left unanswered. We will also be making the following demands of HPD and the New Management:

• Investigate the external waiting list (the list of people whom apply to live in LP and reside outside the complex) and reexamine the internal waiting list (the list of people whom live inside the complex and are asking for a transfer). – Management

• A change within LP’s Board of Directors must occur whether via new elections or some alternate way . Shareholders that have been convicted of crimes in connection to bribery or where LP would face financial consequences from such crimes should be banned from serving in the Board. – HPD & Management

• Changes to the proxy system need to occur. Currently, only one proxy is used for shareholders to vote for candidates that want to serve on the LP Board of Directors. The same proxy is also used to establish quorum at the annual shareholder meeting. The usage of one proxy to serve more than one purpose creates confusions and opportunities for candidates to lobby shareholders for votes during the annual meeting. – Election Services United & Management

• Formal procedures must be established for the Board and shareholders to review and approve of LP budgetary matters . – HPD

• Family members of individuals that have been convicted of bribery or other crimes pertaining to LP finances need to be investigated. These individuals are prone to receiving (or have received) benefits in connection with LP . – HPD

• Establish an enforcement mechanism in which we can verify that tenants or shareholders residing at LP are in fact the legal tenant or shareholder. – HPD & Management

• Allow shareholders to attend LP Board meetings at the very least as silent observers and make all financial documents available to the public via a centralized website. The website should also include other relevant information pertaining to LP (such as maintenance contact info, a profile on the management company, etc.) – HPD

Council Member Reynoso and I look forward to holding the City accountable to the corruption that has long plagued LP. With that being said, we'd like to thank SBLP for consistently ringing the alarm when it comes to the lack of transparency and democracy within LP. We look forward to working with all groups that are interested in further democratizing LP. Should you have any questions regarding the occurrences at LP or anything else, please feel free to contact me at 718-963-3141 or via email at bsantos@council.nyc.gov.

Thank you! Councilman Reynoso and Boris Santos for representing our community with such respect and true leadership. We are greatful for the amount of help you’ve given to the shareholders of Lindsay Park. We have definitely been in a tramendous amount of stress with this outrageous situation and we are only looking to be given the opportunity to to be given a new board that we can say are working for the betterment of Lindsay. This board has shown us that they don’t have our best interest at heart. Thank you for this message it gives us hope that we are not alone. Again thank you I am very greatful.

LP7

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February 15, 2018

This is great news thank you Mr. Santos and Council Member Reynoso we definitely need a new board that’s the only way we can begin to work together to insure we are not being held back from moving Lindsay Park forward for a better future. We want HPD to understand that without trust and transparency we can not move forward and we need a board that will stand by the shareholders and secure that we get everything done without lies and intimidation. You are definitely right that we need the management office to make sure ever apartment is checked out and for the people who are coming in meet the guidelines. Thank you

LP 3

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February 15, 2018

Great news things seem to be moving forward and hopefully HPD will listen to the shareholders we need to clean up this mess we call the board.

thetimeisnow

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February 15, 2018

Thank you Antonio Reynoso and team for sticking by the Shareholders and fighting with us. While we have watched other elected officials come in handing out their bottomless testimonials about how great Cora and the Board is in exchange for a vote. Then they attend our annual meetings while we scream at the top of our lungs to an empty set of individuals pretending to represent us, you stood by us 110%. It’s remarkable to hear folks on the board tell us “they didnt know what was going on.” “Cora will only serve a couple of months,” “she wasn't by herself.” They same people whoncould have done soemthing about it. Then recieve a memo telling us they take corruption seriously. Its a slap in the face. All of this after the fact while there is proof of money taken under the table and all parties can be identified. Still all parties who can identify have not been called back by the DA. Its disheartening to understand how uneducated they really think the shareholders really are. Those who stopped caring will leave but those still here who care need to stand up for themselves. Thank You Councilmen for your encouragement to keep fighting.

Bldg 3

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February 15, 2018

Thank you Boris Santos and Antonio Reynoso. I thought this was going to be a losing battle and now the true facts are out. That board treats the shareholders like we are a bunch of stupid individuals. We need those board members that were at her sentencing on 1/24/18 to step out of the board and move out. Those board members that are in by proxy votes should be removed as they have been in there for decades getting free handouts and favors. I hope allot of shareholders show up to the sentencing of Jay Silverberg, Vinay Vohre and Marvin Daniels on 4/11/2018.

BLD 4 SHAREHOLDER

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February 15, 2018

Thank you CM Reynoso, and everyone else in your office for making this possible. We need answers.

LP 1

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February 15, 2018

I am so pleased to hear this we know we have an elected official that truly cares about this community and does not take this type of behavior lightly. We need these board members off. Thank you!

Bldg 3

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February 15, 2018

This pass year on candidates night I went to bldg. 4 to hear the candidates speak. As I left Cora was in my Bldg 3 collecting the Proxy she had already stepped down as president of the board so why was she in my building collecting the proxy's I told someone in my building and the person ran out. By the time I left that disrespectful candidates night meeting and went back home Cora and Virginia were gone. This is how she determines who will be on the board.

Eyes wide open

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February 16, 2018

I would like to say that I and many others that have lived here for many years are very concerned about who will be on this board next. It seems to me that no one feels comfortable with the way things have been going for decades. I would like to see these buildings go private. I have already talked to politicians and other higher officials on this matter. The people here have spoken and it is obvious that the corruption has been going on for decades, now and before this recent terrible turn of events. We need to find real solutions. Thank God that the people are speaking out with the truth and are not afraid to take this to the last consequences. I will do all I can to help make these changes. I don’t see things here getting any better because you simply change a board like you would chess pieces. We need real change and I will do all I can to help these people. I would like to see these 7 buildings, my home become private. Enough is enough!

BringThe#s

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February 14, 2018

Regarding that poor excuse of a Memo from Esquire Smiler.

The fact it reeks The BOD Members desire to be off “the hot seat”, is very telling. This BOD doesn’t want to face the following facts:

A) During your watch each of you where interested in having a title but not monitoring the business of this corporation, our Homes. Your Homes.

B) Perhaps the perks you were given; particle or full renovation of your apartment. Attending an all expense paid Gala ($2,300.00 per table) or an all experience paid vacation. Holding Bus excursion in which you made a profit. Or receiving expensive gifts. Having your unpaid Maintenance added to our Corporate “Uncollectable Accounts” Expenditure FIscal Year Ended “FYE” 06/30/2017, 2016

in of $5,585,390 Million of Arrears

(See page 7).

C) Giving a 100% control to a fame & fear monger, of our Homes financial future. That’s if you think $110 Million is small change (Challenge/BOD: Watch several episodes of Shark Tank, to get a clue of How Millionaires & Billionaires think, when it comes to spending their money.) Each of you are also responsible for dropping the ball.

You, BOD, do not feel you should not be subject to people’s anger.

You have to live with the truth. BOD Members are responsible for looking out for ALL Shareholders, not just yourself & Cora’s interest. Put on your adult undies & resign, yesterday! Give up your right to:

Your parking space, storage, and other privileges of living in LPHC & maybe then Shareholders will see you have remorse.

I said this to a neighbor the other night. It’s only my opinion. “The reason The BOD Members didn’t addressed this problem (Cora was arrested in December 13?, 2017 & incarcerated January 24, 2018, (THANK YOU GOD!) is because they were never in control from day one.”

They don’t know What must be done to try to inform & be transparent. They gave full control to a theif. I am not stating every BOD knew of what Cora, Jay, Vinny, Marvin & the painter were up to.

I am saying they had no backbone to stand up to a control monger & tell her there were 20 others interested in having their input in the future of our finances & buildings’ up keep. The bricks have been exposed to all weather for 54 years, for goodness sake! Same thing with the oil tanks.

Another Big example: The children’s play ground near Building #2 - It is a disaster waiting to happen, God forbid. So why wasn’t it repaired like Building 5? Beautiful playground with extra padding if a child falls, they’re not injured, severely.

You have eyes but do not see.

You have ears but do not hear.

Mouths that some of you have used to bully your neighbors.

Your “services” are no longer needed nor wanted.

Resign. Yesterday.

PS: To Mr. Smiler - Please stop covering for the BOD. You might have a “date” forthcoming. You are not only paid by 21 LPHC Shareholders...

The board is holding on by a thread you can bring your Lawyers you can even bring Trump and nothing you people can say will change our minds. We want a new board so you people can prance around this hold situation and it amounts to no trust equals no old board. You hear that HPD we deserve this after what the shareholders have indured with the creeps/ thieves. The board might think they can jump back on the bandwagon but it’s not that easy. What gives us shareholders the certainty that you people are truthful nothing because you people already proved your lawyelty to Cora at the sentencing. Stop fighting a loosing battle and get off as shareholders we demand justice and transparency and this board isn’t going to perform its duties the way we need. Hpd we are asking not to be part of the problem but the solution. The only way we are going to live in peace is with this entire board out. HELP!